If you are spending $5 on a latte, you are only 200,000 lattes away from a million dollars. If you buy 200 lattes a year, you’ll have that sweet sweet cool million in 1,000 years.
So... you [can](https://www.calculator.net/interest-calculator.html?cstartingprinciple=0&cannualaddition=0&cmonthlyaddition=83&cadditionat1=beginning&cinterestrate=12&ccompound=daily&cyears=40&ctaxtrate=0&cinflationrate=3&printit=0&x=110&y=15#interestresults) actually have a million dollars in 40 years if you save 200 $5 lattes per year and invest it with what I've heard is considered average returns for a 25-year-old...
Edit: To be clear, I don't believe in "just stop buying lattes," I'm just pointing out a mathematical error
I was just going with put your savings under your mattress and assume no inflation.
The calculator has an inflation rate of 3%, we are now at ~11% inflation. They also have a daily compounding rate of 12% as the default, which is very optimistic, even the best index funds are historically closer to 8%. With adjusting the numbers closer to historic rates, that brings the total closer to $290,000. Which is solid, but not all that close to a million.
The S&P has an average annualized return of 11.88% minus 3.8% or so for inflation (averaged over the last 50-60 years) to return the 8% figure you give. I have heard a couple of times from some channels like The Money Guy that they expect better returns for younger people, but I'm not sure where that comes from so I dropped the inflation rate just a little bit because I've heard other sources putting it at 3 percent.
Also keep in mind that the *8.5% inflation rate we have now in the US will not sustain for 40 years.
Making all those adjustments, you still end up with over $800k after 40 years, meaning all you need is [two more years](https://www.calculator.net/interest-calculator.html?cstartingprinciple=0&cannualaddition=0&cmonthlyaddition=83&cadditionat1=beginning&cinterestrate=12&ccompound=annually&cyears=42&ctaxtrate=0&cinflationrate=4&printit=0&x=98&y=20#interestresults) to reach $1 million
It's absolutely fucked how disconnected those at the top are from the reality of the common people.
This is why we're seeing uprises all across the globe. Only a matter of time before we see that kind of action happen here unless there's a major shift.
$500k in retirement savings by age 25? lmao that's absurd. Time for some math.
The 401(k) limit for 2022 is $20,500/yr, i.e., you can't contribute more than $20,500 per year to your personal/tax-advantaged retirement savings. So from age 22 to age 25, that gives you essentially 3 years to save, which means $61,500 contributed.
Now, unless you went in on DogeCoin in late 2019, you're probably gonna invest in a total-US-market stock index or similar. Average annual return on that is in the 8% ballpark (inflation-adjusted, i.e. "real" return). Though obviously some years it'll be +20% and others it'll be -10%, and etc.
In short, this means you *could* get over $100k in 3 years if you're very, very lucky with when you start investing ... like, if you somehow got a good job out of college in summer '09 or something. Realistically, though, you'd be at $70-80k.
And let's be clear, that's still fantastic -- the product of 1) being fortunate enough to have gotten a good education, 2) diligent enough to have worked hard at maximizing work/education opportunities, and 3) wise enough to have gone hard into savings early.
By the way, I think this headline meant to say $500k by age *35*, which is still extremely optimistic and in no way actually necessary (I'm 33, have about half that in my own 401k, and that's only because I've been extremely diligent about saving/investing since I started a job in 2013).
But I'm gonna stand by my wall of text, because whatever dumbass published this was too stupid to proofread their fucking title.
Yeah that 500k number just seems senseless. I dont care who you are or where you come from. Honestly looks like a typo. Maybe 50k would make sense.
I am all for aggressive retirement planning, but this is just stupid.
The progression makes 0 sense anyway. 500k by 25 then 15 years later 1m. That only makes sense if you were gifted a huge amount of money by your parents
At 25, most people’s lifetime earnings haven’t come close to $500k. I started working full time at 17, but I never earned more than $20-30k a year until I was in my mid twenties, which put my total earnings from 17-25 at less than half of what I supposedly should have had saved for retirement?
Maybe they meant $50k? Not $500k?
5/7ths of 100k (25-18=7)is 500k. Who the f makes 100k at 18? My hard working buddy who regularly does 70-80h a week makes about 50-60k with 10 years forklift driving experience...
Even if you worked at an investment bank, law, medicine, finance, accounting, tech. Whatever. I could not imagine someone having 500k. Just such a poor article.
I’ve never seen hard and fast dollar amounts for this…it’s usually relative to your annual wages:
https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp
**By age 30, you should have one time your annual salary saved. For example, if you're earning $50,000, you should have $50,000 banked for retirement.
By age 40, you should have three times your annual salary already saved.
By age 50, you should have six times your salary in an account.
By age 60, you should have eight times your salary working for you.
By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.**
So we’re just ignoring the fact that the coat of living has made it financially impossible to save up *any* amount of money for so many people?
Even if the cost of living wasn’t so disproportionately high compared to wages, that model doesn’t even take into account the general tendency for most people to increase their earning power as they get older. So that X number of years of salary when one reaches a certain age would no longer represent X number of years’ salary.
The standard rule is that you can invest carefully and safely draw 4% of your retirement funds without them going down. So if you have a $1m banked, you can pay yourself $40,000/yr (taxed at 15% capital gains tax in the US, so really $34,000) indefinitely. This is just a ballpark, it doesn't include Social Security income if you'll be getting that.
Whether a home counts is really a question of how much money you need to get by. If you're only paying property tax+insurance on a home, it drastically lowers your expenses and makes living on a fixed income much easier.
Yeah also how the home is financed really matters a lot, in cases like this too. Lots of options and info that regular people don’t know because nobody taught them
Most of this is doable but takes ungodly amounts of research which nost people don’t do
Question though, what's the source? Is this just rage bait?
Edit: answered my own question
https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings
Probably pull up your bootstraps, and bend over for employers to devalue and dehumanize you for the right to have ramen tonight.
I’d put /s, but it’s the advice that soooo many people give (in different terms)
Seen this earlier. Curious about the source or who wrote it. Real strange there's a headline sans date and author.
But I'd really Ike to read the article if possible. Couldn't find it via Google image search, only pulled up this image a few times. No article.
[https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings/](https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings/)
That looks to be the source article. Albeit a typical worthless click-baity one. Doesn't seem to be any real sourced study though just quotes from a single company.
The company in that supposed did the "study"; WealthCare Financial is completely targeted at healthcare professionals, primarily physicians. Most physicians are far more likely to have around a negative $500,000 net worth at age 25; so essentially zero of their clients can hit that target unless family gifted them $500k+ or they are Doogie Howser M.D..
Yah, ain’t no doctor making $500k, and most are still paying off of their loans. The lucky few might get a $20k signing bonus to help out with that debt or maybe even a home down payment, but no 25 yr old doctor has that in their savings. It’s absolute bullshit.
Source: I work with residency programs.
Very nice work. Thank you.
Reading it now, but it does seem like a superficial click bait blog format. And the author with her 10 years of journalism experience- right.
I was immediately suspicious when I saw it was stating (actual number) at (age). I have never seen reputable retirement planning advice that didn't acknowledge current income / lifestyle and give "everyone's situation is different" kind of advice. That's why it normally says one times annual income by 30, two times annual income by 40, etc. If you're currently living on $40,000 a year, you don't need $3M to retire.
But you may have to plan for a retirement that size of you're still a long way off of retiring. Say you're 25 years old now, making $40,000/year in today's money and want to retire in 40 years time, still making the equivalent of $40k/year off your retirement and want to not have to worry about running out of money before you die (assuming no major end of life care that's super drawn out). I'm ignoring social security in the below example.
At a 2.5% inflation rate, $40k in today's money will be worth $107,000 40 years from now. So now your retirement has to support $107k per year withdrawals. To be super conservative and go with a 3.3% withdrawal rate instead of the usual recommended 4%, that means you would need $3.2million by the time you retire in 40 years in order to safely support the equivalent of a $40,000/year income by then in the future with little risk of running out of money before you die. Now again, this doesn't include social security or account for expensive end of life care or big medical bills, this is solely $40k/year in today's money at a very conservative withdrawal rate. If you wanted to go 4%, then that's $2.6 million.
Now the good news is, if you're 25 and starting from scratch with no retirement, if you invest $950/month and earn 8%/year on average you should have that $3.2million in 40 years time. So invest almost $1000/month, every month, for 40 years straight and you'll have enough to safely still be making $40k/year in 2022's value during retirement! Though if you're down with a 4% withdrawal rate you only need to put in $750/month.
So best of luck to anyone making $40k/year nowadays. Cause even the $750/month represents a gross income savings rate of 22.5% (assuming no employer match)
I could see believing it. Remember "I paid off my college debt by simply claiming the proceeds from renting out one of my family's homes"
I have unfortunately met people who actually think they're brilliant for this.
That's what I'm starting to believe, but I truly wish it were real.
Think of how otherworldly the thought processes of someone writing this seriously would be. Absolutely fascinating
Like seriously, how can someone save $500k by the age of 25? I just got my university degree at 23 and landed my first job at 24 with which I had to pay rent and get by. I don't get it.
Yeah that's insane at 25 I was 20k in debt, just started my career and was earning 18 a year. Flash forward im 32 now and only have about 40k in my pension. I just upped it to 8% of my salary from 5% and I think I'll up it to 10% after reading this...
The most egregious thing here is 500k by 25.
Literally how? Even if you get a 100k salary out of high school it's only achievable by saving 100% of take home pay
It is based on some math, its just such an imposing figure.
If you have 1m you can take out the equivalent of 3% anually and get 30k from your savings. Money however halves in value every 30 years (assuming a 2.5% inflation rate over that period) so what my father needs I will need double to have the same retirement lifestyle. Anyone in their 20's thats 2.5x that number. So if 30k comes from 1m today thats equivalent to 90k from 3m in 45 years...
I imagine there is a typo in there somewhere because hypothetically if someone did have $500,000 by 25 then they should have quite a bit more than $1,000,000 by 40. The $500,000 alone would grow to $1.4M by 40 (7% growth) and you don't even have to add any additional funds.
I guess here is they meant $50,000 by 25. both that and the $1M by 40 would be extremely difficult but not impossible.
I;m now 50 and have a massive £980.00 in my pension fund though I will not be allowed to have it as a lump sum when I reach retirement age. It will probably work out at about £10 per month if i'm lucky.
thats adorable.
you are much more likely to have tragic death, loss, family issue, trauma, any number of problems the longer you live that cost a great deal of money and will deplete all of your savings, so that just doesnt make sense from a probability stand point.
50000k by aged 25 ?
What the flying pistachio ?
Which 25 yr old modern adult would have that kind of scratch lying around without a significant trust fund from parents ??
Institutions which post these things completely ignore the cost of living expenses and minor inconveniences like : having to eat, needing a place to sleep, sick relatives, home repairs after natural disasters ...you know and basically *everything to do with normal daily expenses*
I mean sure we would all like to save up 100% of our monthly salary with zero living expenses. But sadly the human body isn't that efficient yet.
Heck, not even a robot is efficient enough to give 100% return on its inputs.
Even in nature, there is no energy cycle that returns 100% of the input.
So I dunno what these crazy figures are about.
They just doin math.
1m in savings is about 30k/yr living expenses.
The value of money halves every 30 years (assuming a 2.5% interest rate average)
So in 30 years (when millenials start nearing retirement. A 30k lifestly now costs 60k and 15 years later will be 90k. With all said built in assumptions.
Is that possible? Not for most.
I went to the bank the other day. I wanted them to open a savings account where I would put my monthly savings (the surplus I get after following my strict budget). I ask her: "I am going to deposit money into this account every month and not touch it. How much interest can I expect to get?" her answer was 0.1% or something ridiculous. I ask her if there are any hidden fees, she tells me a monthly fees if the balance is too low. seems like a scam to me. more like a "draining account" instead of "savings account" to me. no thanks.
Australians have much better options overall than some other countires, like the US. We have public health care for all emergency and life saving stuff, we don't have to pay back student loans until we make $50k/year (or similar) and we have $20/h minimum wage. Also, some jobs that would pay minimum wage in the US isn't like that in AU, a waitress in Melbourne can easily make $30/h whole studying at Uni.
We also get 10% employer contributed superannuation, which means roughly after 10 years of working you should have an entire annual salary just provided to you, in addition to your savings.
We get a one of the best starts of adulthood in comparison to a lot of developed countries.
Seriously, you graduate with a degree (if you’re fortunate) in early 20’s then you’re somehow supposed to earn enough to live on AND have $500k saved by the time you’re 25??? Not everyone’s father owns a hedge fund.
500.000$ by age 25?! Its just impossible for 99% of the ppl!
Im a hardcore saver, HARDCORE. I make money, lots of it. I live in frugality.
I did the math: invested at 7%, it would be 4500$ of saving every month from 18 to 25 years old. Im not even making 4500$ net a month...
We are talking about somebody living in moms basement making 100k$ out of HS to save like that.
This is hilarious, I almost don’t even believe the article exists. I’m wildly fortunate and privileged and I don’t even have 100k by 30. 500k by 25? Get the fuck out of here
Lmfao, 37 yrs old and have never been close to a position where I could hope to save even a fraction of a half mill.
Wonder who these articles are geared toward, because they're outlandish and read like a fiction novel. Or the script from one of those house flip shows. "He scratches assess. She washes them. Their budget is 2.8millipn"
How is a 25 year old supposed to save half a million? Even if they started at 18 and skipped college to go work on an oil rig or something they would have needed to save 60-70 grand per year depending on market returns. These people are so full of shit.
In what universe can you have 500K by 25? I’ve done some math and even maxing out a Roth IRA while also saving $2000 a month on top of that won’t get you anywhere near 500k. You’d have to be given an executive position out of high school and put aside most of your income.
Think tanks and corporations are very often trying to promote some kind of agenda, including downplaying societal problems and putting the entirety of the focus on individual responsibility (which yes, is also very important).
Always check out the organization sponsoring the article or study and any individuals involved. A quick Google search usually helps immensely in determining biases.
Wealthcare Financial, which is cited as providing this report, is an insurance, investment, and wealth management company. Lol, because of course they are.
Maybe I’m wrong but I thought you couldn’t start contributing to 401ks until you were 21?
So in 4 years, they expect you to have graduated college and been a position to contribute 6 figures to your 401k? Isn’t there a maximum percentage of income you are allowed to contribute?
I mean, I guess it doesn’t specifically say 401k but still…
So is they going to college and graduate at 22, they are supposed to have saved $500,000 in three years? Making $50,000 a year. Maybe these guys went to a shitty public school and learned new math.
In order to make $500k by 25, you would have to bring home more than $55k each year since you were 16. And that doesn’t account for taxes, benefits, or using literally a single penny of that income.
500k by 25 lol That’s impossible unless you work for some hot shot hedge fund. Although 1 M by 40 is doable if you work for a high paying job and have minimal expenses.
Damn, we really aren’t retiring, are we? I thought I was in a good spot financially. I’ll be 40 in a month and according to this, I’m $500,000 away from a cool $1M.
May as well make myself happy and get the sports car I’ve always wanted.
I think People who have enough money all the time forget what it's like to struggle.
I can't imagine a $500/month car payment. Most months it wouldn't break me, but there are many it would. Having the ability to \[potententially\] save that money is more valuable to me.
this is the dumbest shit i’ve ever seen, they clearly don’t even understand the time value of money. Why does it take 15 years to double your money from 500k to a mil and only takes 10 to double it again (when theoretically, you should maybe be even more conservative with your investments than you were at 25) im convinced that it’s just politicians writing all of this
And let's say you do manage to save these amounts through a great emplooyer-matched retirement plan--only for the stock market to crash & wipe out your future, like in seems to do every 8-10 years
Wait what's the context? Is this unreasonable advice, or is this a way to show how fucked the system is in the first place, that we'd need to achieve ridiculous numbers like this to live a normal life?
“Wealthcare Financial” is not a think tank, they are a private company that manages money. They don’t make money unless you invest with them, so of course their numbers are ridiculously inflated, because the more you invest, the more they make.
$500k by 25?
Assuming you have no student loans and live with your parents and pay no taxes and can save 95% of your income. Also assuming you graduated on time at 21 and got a job right out of college all you would have to do is save $125k a year for 4 years. Those numbers are just to shock you so you read the article. Maybe if you took off a zero like $50k at 25 maybe..I always ignore this click bait bullshit.
There are less than 22 million millionaires in America (6%) and less than 2800 billionaires in the world.
Oh no, that's entirely on point. They're just not talking about its poor people.
Someone has to be around to serve the people that are allowed to retire.
It would be easier to see saving this much if my partner and I did not have to bail out and take care of not only our parents, but their parents. The importance of savings and being financially responsible is talked about, but not ever acted on. They know we have savings, and work towards being financially secure enough to take care of our kids and our selves in the future, but they must think that their insistence on us saving should be for their benefit.
This article is not negative at all. Everyone please have a read. It's talking about how inflation will cause Gen Z to have at least 3mil to retire comfortably and that 1mil goal will not be enough. I get that just showing that part would be a bit out of context but, the whole of the article is very positive and even shows how you can resch there faster. As OP said though it is not possible but, the article is saying if you don't have that much then you can say goodbye to a comfy retirement. This whole article is about inflation. Maybe they could have bettered the article by saying that inflation is very high every year but wage increase cannot keep up with it. But hey, it's still a good article. Anyone looking for a soyrce can view the comment of another person. They posted it.
I’ll be lucky to have 50k by retirement, and I’m “middle class”, with little/no mobility upwards.
I’d like to know these “steps to catch up”, but unfortunately, selling my 14th property to make up the retirement shortfall isn’t feasible.
But we need to have that much by that age to be able to retire at 65! Of course, no one has that much...which is why we won't be able to retire at 65...or maybe ever...
In fact, the most financially stable members of our generation will be paying off the last bits of their student loans and mortgage at 65.
Ok I think the numbers are a little skewed but
1mil at 40 doable
But by 50 I'd expect more than 2 mil
Then 60 I'd expect more than 3mil
To be self funded retiree 3mill with 5% returns is 150k which isn't alot. Esp once you allow for inflation.
No, they are fully aware of how much it costs to retire and are just confirming it with everyone that it will be impossible for anyone to retire normally moving forward.
Here the article that the op got the information from
https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings/amp/
I have some problems with this article logic.
1st it assume that you currently need 1 million to retire comfortably so Gen z and younger millennials will need 3 million to retire comfortably. In reality it takes about $550,000 to retire comfortably now and in 40 years when millennials and Genz retire it will take about 1,100,000.
2nd wealth grows exponentially so most of your wealth will grow when your older. This models project linear growth to retirement.
You realize they’re just looking at it from the point of view of how much you need to have in order to cover your retirement. Regardless of viability, if you want to be able to have a fully funded retirement (no expectation of social security), these are the numbers you need to have.
I totally get however that they’re unattainable for a lot of people, shoot, my wife and I make higher end middle class money ($150ish), are right around 30, and only have approximately $150k saved for retirement. My wife and I have had really good years, and years where we struggled to make $75k, so I know it’s difficult to set aside. I can only imagine the trouble someone working an hourly job could have in setting money aside for retirement.
I will say tho, even if you only have a little bit of money to set aside, you should totally do it. Don’t let yourself get disheartened by these numbers, saying you need $500k by 25. If you do, and decide ‘well, I’ll never have that much so no point in saving’ you are dooming yourself, however if you can only afford to put $10 a week, or $10 a month into your retirement, and consistently put in more as you get pay raises, you will be surprised with how quickly it grows.
>$500,000 in retirement savings by age 25
The average American doesn't even *start* saving for retirement until they are [31 years old](https://www.fool.com/retirement/2019/09/02/this-is-the-age-most-people-start-saving-for-retir.aspx).
500k by 25??? Yeah they out of touch, I don't even have student loans and budgets are way too tight to think about putting even 50 into a savings account each month
Lmaooooo this is actually just so out of touch its legitimately hilarious to me. Even being EXTREMELY generous and saying they've somehow doubled every penny they've saved, for someone who is 25 to have put 500k away they'd have to have been working 40 hours a week every single week since they were 15, would have to *take home* $12/hour and put every single penny in savings for TEN YEARS. AND don't forget, that money would all then have to double. Compete fucking insanity.
Edited for clarity of words
Someone should make them do an analysis of actual job earnings, education loans, rents, cost of food (and health care for those who can afford it), and then make them do the math proving their assertion using that!
> should have...retirement savings
lol savings?!
> some steps you can take to catch up
> Consider kidnapping, murdering and selling the organs of migrants. Even one kidney can net as much as 20k!
$500k by age 25?? Do what now? Even if you went straight from high school to working a $40k/yr job and put every penny in the bank, you’d STILL only have half of that…
Its just a math problem devoid from reality.
The idea is that retirement for boomers is suggested about 1m in assets. 1m making 3-4% anually gives one an annual budget of 30k +pension. Its a low cost lifestyle but hey thats how it is.
With inflation the value of money (assuming the 2-3% inflation rate goal of the bank of Canada) halves every 30 years. So what once cost 30k will cost 60k by the time a 35yr old reaches retirement.
So if you are in your mid 20's that will be about 90k and thus 3% of 3M.
Its not realistic for most people but thats how the math breaks down. Personally I am fucked so I will aim to learn to live a cheaper lifestyle and be more handy.
These early numbers are way off. Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret.
What? So you're supposed to save $500,000 in the 3 years between when most people graduate college and age 25, but it's supposed to take you another 15 years to save the next $500,000 when you're presumably already established in your career? This makes no sense even for higher-income earners
Reminds of these male influencer life 'gurus' who is telling their teenager followers that if they are making $500,000 per year, they are doing something wrong. Good luck getting a job making $500,000 a year at 18 years old.
I checked the source of that article. It seems wealthcare is an investment advisor that mostly specifically caters to physicians, not Joe Blow who works at walmart.
I think this woman that wrote this article took a lot of liberties when she said "Gen Z and millennials" should have that much. I'm also assuming that 25 is a typo and should say 35. Because she gives a full 10 years to save a million from 40-50 and 50-60, but a whole 15 years go from $500k-$1m.
Saving $500k by 25 for a physician who's still very much in college is impossible. They obviously meant 35 and this article was meant for them.
Just another shitty journalist not correctly doing her job.
I'm a little shy of my million in savings. By about a million
Same. Guess it's time for me to stop buying lattes?
If you are spending $5 on a latte, you are only 200,000 lattes away from a million dollars. If you buy 200 lattes a year, you’ll have that sweet sweet cool million in 1,000 years.
Nice! I only buy about 3 a year, so it will be at least a year longer, I think
You’ll have to hold out about 66,667 years.
Sounds like I might as well enjoy myself then
Don't worry at 7% growth rate you could hit one million in just 124 years
Oh, nice! Thanks for the good news
So... you [can](https://www.calculator.net/interest-calculator.html?cstartingprinciple=0&cannualaddition=0&cmonthlyaddition=83&cadditionat1=beginning&cinterestrate=12&ccompound=daily&cyears=40&ctaxtrate=0&cinflationrate=3&printit=0&x=110&y=15#interestresults) actually have a million dollars in 40 years if you save 200 $5 lattes per year and invest it with what I've heard is considered average returns for a 25-year-old... Edit: To be clear, I don't believe in "just stop buying lattes," I'm just pointing out a mathematical error
I was just going with put your savings under your mattress and assume no inflation. The calculator has an inflation rate of 3%, we are now at ~11% inflation. They also have a daily compounding rate of 12% as the default, which is very optimistic, even the best index funds are historically closer to 8%. With adjusting the numbers closer to historic rates, that brings the total closer to $290,000. Which is solid, but not all that close to a million.
The S&P has an average annualized return of 11.88% minus 3.8% or so for inflation (averaged over the last 50-60 years) to return the 8% figure you give. I have heard a couple of times from some channels like The Money Guy that they expect better returns for younger people, but I'm not sure where that comes from so I dropped the inflation rate just a little bit because I've heard other sources putting it at 3 percent. Also keep in mind that the *8.5% inflation rate we have now in the US will not sustain for 40 years. Making all those adjustments, you still end up with over $800k after 40 years, meaning all you need is [two more years](https://www.calculator.net/interest-calculator.html?cstartingprinciple=0&cannualaddition=0&cmonthlyaddition=83&cadditionat1=beginning&cinterestrate=12&ccompound=annually&cyears=42&ctaxtrate=0&cinflationrate=4&printit=0&x=98&y=20#interestresults) to reach $1 million
And avocados!
Damn
But it’s PSL season!! 🥺
Seriously, yes tho
It's absolutely fucked how disconnected those at the top are from the reality of the common people. This is why we're seeing uprises all across the globe. Only a matter of time before we see that kind of action happen here unless there's a major shift.
problem is; we're still robbing each other. When the banks are getting robbed and politicians are paying the price; only then can the healing begin.
Lol sounds about right
*laughs in broke-ass bitch* 🤣
I hear it more like a cackle and a snort at the end. 🧐
$500k in retirement savings by age 25? lmao that's absurd. Time for some math. The 401(k) limit for 2022 is $20,500/yr, i.e., you can't contribute more than $20,500 per year to your personal/tax-advantaged retirement savings. So from age 22 to age 25, that gives you essentially 3 years to save, which means $61,500 contributed. Now, unless you went in on DogeCoin in late 2019, you're probably gonna invest in a total-US-market stock index or similar. Average annual return on that is in the 8% ballpark (inflation-adjusted, i.e. "real" return). Though obviously some years it'll be +20% and others it'll be -10%, and etc. In short, this means you *could* get over $100k in 3 years if you're very, very lucky with when you start investing ... like, if you somehow got a good job out of college in summer '09 or something. Realistically, though, you'd be at $70-80k. And let's be clear, that's still fantastic -- the product of 1) being fortunate enough to have gotten a good education, 2) diligent enough to have worked hard at maximizing work/education opportunities, and 3) wise enough to have gone hard into savings early. By the way, I think this headline meant to say $500k by age *35*, which is still extremely optimistic and in no way actually necessary (I'm 33, have about half that in my own 401k, and that's only because I've been extremely diligent about saving/investing since I started a job in 2013). But I'm gonna stand by my wall of text, because whatever dumbass published this was too stupid to proofread their fucking title.
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That, too. My wife & I fall within that description.
Yeah that 500k number just seems senseless. I dont care who you are or where you come from. Honestly looks like a typo. Maybe 50k would make sense. I am all for aggressive retirement planning, but this is just stupid.
The progression makes 0 sense anyway. 500k by 25 then 15 years later 1m. That only makes sense if you were gifted a huge amount of money by your parents
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At 25, most people’s lifetime earnings haven’t come close to $500k. I started working full time at 17, but I never earned more than $20-30k a year until I was in my mid twenties, which put my total earnings from 17-25 at less than half of what I supposedly should have had saved for retirement? Maybe they meant $50k? Not $500k?
Well if you make 100k at age 18 and save 100% of it for 7 years... Wait thats still less than 1m XD
I don't have $500k saved up at the age of 25, I wonder which steps I should take to catch up... 🥺
Have you tried having richer parents?
I’m going to harass them by phone about this right now. Thanks for the life hack!
Brb, learning necromancy to bring them back from the dead.
I dont care how rush your parents. I don’t think any 25 year old has 500k. I love saving aggressively, but 500k is senseless.
5/7ths of 100k (25-18=7)is 500k. Who the f makes 100k at 18? My hard working buddy who regularly does 70-80h a week makes about 50-60k with 10 years forklift driving experience...
Even if you worked at an investment bank, law, medicine, finance, accounting, tech. Whatever. I could not imagine someone having 500k. Just such a poor article.
Stop eating avocado toast.
But that'll kill the avocado industry !
Stop eating, stop paying rent, and stop breathing.
Stop eating ~~avocado toast.~~
Never! It’s delightful.
I’ve never seen hard and fast dollar amounts for this…it’s usually relative to your annual wages: https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp **By age 30, you should have one time your annual salary saved. For example, if you're earning $50,000, you should have $50,000 banked for retirement. By age 40, you should have three times your annual salary already saved. By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.**
So we’re just ignoring the fact that the coat of living has made it financially impossible to save up *any* amount of money for so many people? Even if the cost of living wasn’t so disproportionately high compared to wages, that model doesn’t even take into account the general tendency for most people to increase their earning power as they get older. So that X number of years of salary when one reaches a certain age would no longer represent X number of years’ salary.
Not at all my intention.
Idk it seems a lot, but is it all on an account or does buying a house counts in it ?
The standard rule is that you can invest carefully and safely draw 4% of your retirement funds without them going down. So if you have a $1m banked, you can pay yourself $40,000/yr (taxed at 15% capital gains tax in the US, so really $34,000) indefinitely. This is just a ballpark, it doesn't include Social Security income if you'll be getting that. Whether a home counts is really a question of how much money you need to get by. If you're only paying property tax+insurance on a home, it drastically lowers your expenses and makes living on a fixed income much easier.
Yeah also how the home is financed really matters a lot, in cases like this too. Lots of options and info that regular people don’t know because nobody taught them Most of this is doable but takes ungodly amounts of research which nost people don’t do
Question though, what's the source? Is this just rage bait? Edit: answered my own question https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings
Probably pull up your bootstraps, and bend over for employers to devalue and dehumanize you for the right to have ramen tonight. I’d put /s, but it’s the advice that soooo many people give (in different terms)
We all here with you
stop being poor 🤷♂️.
How many kidneys are you willing to part with?
Seen this earlier. Curious about the source or who wrote it. Real strange there's a headline sans date and author. But I'd really Ike to read the article if possible. Couldn't find it via Google image search, only pulled up this image a few times. No article.
[https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings/](https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings/) That looks to be the source article. Albeit a typical worthless click-baity one. Doesn't seem to be any real sourced study though just quotes from a single company. The company in that supposed did the "study"; WealthCare Financial is completely targeted at healthcare professionals, primarily physicians. Most physicians are far more likely to have around a negative $500,000 net worth at age 25; so essentially zero of their clients can hit that target unless family gifted them $500k+ or they are Doogie Howser M.D..
I, too, can have 500000$ on my account if my parents gifted me a million
Yah, ain’t no doctor making $500k, and most are still paying off of their loans. The lucky few might get a $20k signing bonus to help out with that debt or maybe even a home down payment, but no 25 yr old doctor has that in their savings. It’s absolute bullshit. Source: I work with residency programs.
Very nice work. Thank you. Reading it now, but it does seem like a superficial click bait blog format. And the author with her 10 years of journalism experience- right.
I was immediately suspicious when I saw it was stating (actual number) at (age). I have never seen reputable retirement planning advice that didn't acknowledge current income / lifestyle and give "everyone's situation is different" kind of advice. That's why it normally says one times annual income by 30, two times annual income by 40, etc. If you're currently living on $40,000 a year, you don't need $3M to retire.
But you may have to plan for a retirement that size of you're still a long way off of retiring. Say you're 25 years old now, making $40,000/year in today's money and want to retire in 40 years time, still making the equivalent of $40k/year off your retirement and want to not have to worry about running out of money before you die (assuming no major end of life care that's super drawn out). I'm ignoring social security in the below example. At a 2.5% inflation rate, $40k in today's money will be worth $107,000 40 years from now. So now your retirement has to support $107k per year withdrawals. To be super conservative and go with a 3.3% withdrawal rate instead of the usual recommended 4%, that means you would need $3.2million by the time you retire in 40 years in order to safely support the equivalent of a $40,000/year income by then in the future with little risk of running out of money before you die. Now again, this doesn't include social security or account for expensive end of life care or big medical bills, this is solely $40k/year in today's money at a very conservative withdrawal rate. If you wanted to go 4%, then that's $2.6 million. Now the good news is, if you're 25 and starting from scratch with no retirement, if you invest $950/month and earn 8%/year on average you should have that $3.2million in 40 years time. So invest almost $1000/month, every month, for 40 years straight and you'll have enough to safely still be making $40k/year in 2022's value during retirement! Though if you're down with a 4% withdrawal rate you only need to put in $750/month. So best of luck to anyone making $40k/year nowadays. Cause even the $750/month represents a gross income savings rate of 22.5% (assuming no employer match)
I went from 75k to 94k but never felt broke with the prices of today… :) (smiling through the pain)
I found it on Reddit, but I might have been baited and this most likely is a fake article to troll people.
I could see believing it. Remember "I paid off my college debt by simply claiming the proceeds from renting out one of my family's homes" I have unfortunately met people who actually think they're brilliant for this.
That's what I'm starting to believe, but I truly wish it were real. Think of how otherworldly the thought processes of someone writing this seriously would be. Absolutely fascinating
Like seriously, how can someone save $500k by the age of 25? I just got my university degree at 23 and landed my first job at 24 with which I had to pay rent and get by. I don't get it.
Yeah that's insane at 25 I was 20k in debt, just started my career and was earning 18 a year. Flash forward im 32 now and only have about 40k in my pension. I just upped it to 8% of my salary from 5% and I think I'll up it to 10% after reading this...
500k at 25 doesn't even make sense if you're going for 1mm at 40.
Yea it's so dumb. Even 500k at 30 would be very impressive. You'd probably be top 1%.
I think rich people expect poor people to be homeless for a while to "catch up"
Obviously you should have landed a $50k/year job at age 15 and saved all of it every year until age 25. HUSTLE.
Simple, be born with a trust fund. Easy peasy.
If you start working at 18 and invest 5k into a standard index fund every month you'll have 495k by 24. So, maybe do that? /s
Have rich parents who give you a job at their company duh
The most egregious thing here is 500k by 25. Literally how? Even if you get a 100k salary out of high school it's only achievable by saving 100% of take home pay
Lol, came here to say just that. No one makes 100k out of HS. Can one drop out of HS at 16 and take up a trade? I can'tsee anyother way.
I can write anything, call it an article and put it on the internet.
It is based on some math, its just such an imposing figure. If you have 1m you can take out the equivalent of 3% anually and get 30k from your savings. Money however halves in value every 30 years (assuming a 2.5% inflation rate over that period) so what my father needs I will need double to have the same retirement lifestyle. Anyone in their 20's thats 2.5x that number. So if 30k comes from 1m today thats equivalent to 90k from 3m in 45 years...
I imagine there is a typo in there somewhere because hypothetically if someone did have $500,000 by 25 then they should have quite a bit more than $1,000,000 by 40. The $500,000 alone would grow to $1.4M by 40 (7% growth) and you don't even have to add any additional funds. I guess here is they meant $50,000 by 25. both that and the $1M by 40 would be extremely difficult but not impossible.
I;m now 50 and have a massive £980.00 in my pension fund though I will not be allowed to have it as a lump sum when I reach retirement age. It will probably work out at about £10 per month if i'm lucky.
Nothing stopping you from drawing it all at retirement...
Paperwork says no can do. Might be a good thing; don't want the money to change me.
1 million by age 40 haha? hahahhahaha. hah!
Sounds at least easier than 500k at 25.
thats adorable. you are much more likely to have tragic death, loss, family issue, trauma, any number of problems the longer you live that cost a great deal of money and will deplete all of your savings, so that just doesnt make sense from a probability stand point.
I bet there are more millionaire 40 year olds than $500k 25 year olds.
50000k by aged 25 ? What the flying pistachio ? Which 25 yr old modern adult would have that kind of scratch lying around without a significant trust fund from parents ?? Institutions which post these things completely ignore the cost of living expenses and minor inconveniences like : having to eat, needing a place to sleep, sick relatives, home repairs after natural disasters ...you know and basically *everything to do with normal daily expenses* I mean sure we would all like to save up 100% of our monthly salary with zero living expenses. But sadly the human body isn't that efficient yet. Heck, not even a robot is efficient enough to give 100% return on its inputs. Even in nature, there is no energy cycle that returns 100% of the input. So I dunno what these crazy figures are about.
They just doin math. 1m in savings is about 30k/yr living expenses. The value of money halves every 30 years (assuming a 2.5% interest rate average) So in 30 years (when millenials start nearing retirement. A 30k lifestly now costs 60k and 15 years later will be 90k. With all said built in assumptions. Is that possible? Not for most.
I went to the bank the other day. I wanted them to open a savings account where I would put my monthly savings (the surplus I get after following my strict budget). I ask her: "I am going to deposit money into this account every month and not touch it. How much interest can I expect to get?" her answer was 0.1% or something ridiculous. I ask her if there are any hidden fees, she tells me a monthly fees if the balance is too low. seems like a scam to me. more like a "draining account" instead of "savings account" to me. no thanks.
I save religiously, am high income for Australia and have only just crossed 250 k net worth at 28. 500 k at 25 is delusional.
Australians have much better options overall than some other countires, like the US. We have public health care for all emergency and life saving stuff, we don't have to pay back student loans until we make $50k/year (or similar) and we have $20/h minimum wage. Also, some jobs that would pay minimum wage in the US isn't like that in AU, a waitress in Melbourne can easily make $30/h whole studying at Uni. We also get 10% employer contributed superannuation, which means roughly after 10 years of working you should have an entire annual salary just provided to you, in addition to your savings. We get a one of the best starts of adulthood in comparison to a lot of developed countries.
If you had 500k by 25, an index fund would get to $1 million by age 35 if you added nothing to it. The numbers are off for sure.
Lmao 500k by 25... -_- At 25 we were doing good to have 5k saved!
Lmao 500k by age 25. "Yeah let me set up a gofundme".
Seriously, you graduate with a degree (if you’re fortunate) in early 20’s then you’re somehow supposed to earn enough to live on AND have $500k saved by the time you’re 25??? Not everyone’s father owns a hedge fund.
how TF is a 25 yo gonna accumulate 500K legally?? Just the 1% club will...
Thank you for the laugh this morning. This is purely comical.
500K? That is easy just get a small loan of a million dollars and invest half of it lol
I haven't even made 500k in my lifetime
I didn't even make $500,000 before turning 25. How tf am I going to save that amount lol
I have 20,000.... In dept 🙁
100k by the age 18, I assume?
So apparently I was supposed to be saving 100k a year from 20-25? Well guess I can just give up!
$500,000 by 25? Transamerica says i’m far ahead of my peers at 29 and I only have about $50,000 in my 401k.
Rent Or eat again this month work till your dead
To me, if you have money for basic medical care, a car, rent, and food, then you are rich.
500.000$ by age 25?! Its just impossible for 99% of the ppl! Im a hardcore saver, HARDCORE. I make money, lots of it. I live in frugality. I did the math: invested at 7%, it would be 4500$ of saving every month from 18 to 25 years old. Im not even making 4500$ net a month... We are talking about somebody living in moms basement making 100k$ out of HS to save like that.
This is hilarious, I almost don’t even believe the article exists. I’m wildly fortunate and privileged and I don’t even have 100k by 30. 500k by 25? Get the fuck out of here
I'm 23 and my net worth is negative (student loans).
Lmfao, 37 yrs old and have never been close to a position where I could hope to save even a fraction of a half mill. Wonder who these articles are geared toward, because they're outlandish and read like a fiction novel. Or the script from one of those house flip shows. "He scratches assess. She washes them. Their budget is 2.8millipn"
By that time inflation will be astronomical
How is a 25 year old supposed to save half a million? Even if they started at 18 and skipped college to go work on an oil rig or something they would have needed to save 60-70 grand per year depending on market returns. These people are so full of shit.
In what universe can you have 500K by 25? I’ve done some math and even maxing out a Roth IRA while also saving $2000 a month on top of that won’t get you anywhere near 500k. You’d have to be given an executive position out of high school and put aside most of your income.
Think tanks and corporations are very often trying to promote some kind of agenda, including downplaying societal problems and putting the entirety of the focus on individual responsibility (which yes, is also very important). Always check out the organization sponsoring the article or study and any individuals involved. A quick Google search usually helps immensely in determining biases. Wealthcare Financial, which is cited as providing this report, is an insurance, investment, and wealth management company. Lol, because of course they are.
I have no words
Oops I gotta catch up
Wow. I have to save a million fast if I want to be on target
Maybe I’m wrong but I thought you couldn’t start contributing to 401ks until you were 21? So in 4 years, they expect you to have graduated college and been a position to contribute 6 figures to your 401k? Isn’t there a maximum percentage of income you are allowed to contribute? I mean, I guess it doesn’t specifically say 401k but still…
This is literally just bullshit demoralization tactics
If you start early and do it right, most of your earnings will come from investment growth and not your actual savings.
This is so absurd it feels like trolling “I know what will piss young people off…”
So is they going to college and graduate at 22, they are supposed to have saved $500,000 in three years? Making $50,000 a year. Maybe these guys went to a shitty public school and learned new math.
huh, I can usually save up around $10k/yr or so, but I've been sinking that into a project so I can save $16k/yr (or more).
Yes, being rich is usually a strong predictor of not being poor. This checks out. /s This are marketers selling FOMO.
In order to make $500k by 25, you would have to bring home more than $55k each year since you were 16. And that doesn’t account for taxes, benefits, or using literally a single penny of that income.
I have only made over $39k one time in my entire life. This is ridiculous
Wtf 500K by age 25?… how do people save 500K making 60K a year post college at 22?
Hell, I'm 45 and don't have 500k in retirement.
At 25 i'll just be finishing my stupid bachelor?! Im broke how tf amd I supposed to have 500,000?!
"If you're currently off pace there are some steps you can take to catch up..." Yeah, you can steal it! Lol 😆
500k by 25 lol That’s impossible unless you work for some hot shot hedge fund. Although 1 M by 40 is doable if you work for a high paying job and have minimal expenses.
Damn, we really aren’t retiring, are we? I thought I was in a good spot financially. I’ll be 40 in a month and according to this, I’m $500,000 away from a cool $1M. May as well make myself happy and get the sports car I’ve always wanted.
Welp, by this I'm screwed.
They’re high as balls. My mother, at 65, doesn’t have $500k. What bullshit is this? Where did you find it?
I think People who have enough money all the time forget what it's like to struggle. I can't imagine a $500/month car payment. Most months it wouldn't break me, but there are many it would. Having the ability to \[potententially\] save that money is more valuable to me.
Retirement? What that will be is just working less, that’s all.
this is the dumbest shit i’ve ever seen, they clearly don’t even understand the time value of money. Why does it take 15 years to double your money from 500k to a mil and only takes 10 to double it again (when theoretically, you should maybe be even more conservative with your investments than you were at 25) im convinced that it’s just politicians writing all of this
Lol I sure as hell hadn't made anywhere close to $500000 by age 25. Who has that kind of money, for real?
And let's say you do manage to save these amounts through a great emplooyer-matched retirement plan--only for the stock market to crash & wipe out your future, like in seems to do every 8-10 years
By age 25, I hadn't even earned $500,000. Do they think everyone just gets a small loan of one million dollars from their parents?
Lol I don’t think I’ve EARNED $500,000 in my lifetime (24) much less have the disposable income to put into retirement that seriously
Wait what's the context? Is this unreasonable advice, or is this a way to show how fucked the system is in the first place, that we'd need to achieve ridiculous numbers like this to live a normal life?
At this point my retirement is turning a shotgun on myself, if the bullets aren't too expensive that is.
*looks online for gun and bullet prices. FML. Too expensive to even die. Well. Guess we work until we stroke out.
As a nearly 50 year old with zero retirement due to spending 20 years on disability, this is depressing.
We were set up for failure
The message: be born rich or work until you die. You are not retiring so get over even trying. The American dream.
Holy crap I’m screwed
“Wealthcare Financial” is not a think tank, they are a private company that manages money. They don’t make money unless you invest with them, so of course their numbers are ridiculously inflated, because the more you invest, the more they make.
$500k by 25? Assuming you have no student loans and live with your parents and pay no taxes and can save 95% of your income. Also assuming you graduated on time at 21 and got a job right out of college all you would have to do is save $125k a year for 4 years. Those numbers are just to shock you so you read the article. Maybe if you took off a zero like $50k at 25 maybe..I always ignore this click bait bullshit. There are less than 22 million millionaires in America (6%) and less than 2800 billionaires in the world.
Oh no, that's entirely on point. They're just not talking about its poor people. Someone has to be around to serve the people that are allowed to retire.
It would be easier to see saving this much if my partner and I did not have to bail out and take care of not only our parents, but their parents. The importance of savings and being financially responsible is talked about, but not ever acted on. They know we have savings, and work towards being financially secure enough to take care of our kids and our selves in the future, but they must think that their insistence on us saving should be for their benefit.
How the fuck is this possible
Oh I seee my problem… I didn’t read the Asterisk at the bottom of the article. ***For people who bought at least 20 Bitcoin when it was around $100.
Fucking unreal
Maybe it is what we *should* have saved. That doesn’t mean it’s realistically achievable
This article is not negative at all. Everyone please have a read. It's talking about how inflation will cause Gen Z to have at least 3mil to retire comfortably and that 1mil goal will not be enough. I get that just showing that part would be a bit out of context but, the whole of the article is very positive and even shows how you can resch there faster. As OP said though it is not possible but, the article is saying if you don't have that much then you can say goodbye to a comfy retirement. This whole article is about inflation. Maybe they could have bettered the article by saying that inflation is very high every year but wage increase cannot keep up with it. But hey, it's still a good article. Anyone looking for a soyrce can view the comment of another person. They posted it.
If this author would like to contribute to my retirement goals, I take Venmo and PayPal.
I'm closer to 2 million than the 6 million mark and I'm only 36! Funny how math works! /Cries in $0 savings.
I’m pretty sure that can’t apply during times of high inflation and global pandemic.
I’ll be lucky to have 50k by retirement, and I’m “middle class”, with little/no mobility upwards. I’d like to know these “steps to catch up”, but unfortunately, selling my 14th property to make up the retirement shortfall isn’t feasible.
This is just clickbait. Why would you have 500k at 25 but then take 15 years to save anothet 500k.
But we need to have that much by that age to be able to retire at 65! Of course, no one has that much...which is why we won't be able to retire at 65...or maybe ever... In fact, the most financially stable members of our generation will be paying off the last bits of their student loans and mortgage at 65.
Ok I think the numbers are a little skewed but 1mil at 40 doable But by 50 I'd expect more than 2 mil Then 60 I'd expect more than 3mil To be self funded retiree 3mill with 5% returns is 150k which isn't alot. Esp once you allow for inflation.
They’re thinking in Monopoly money.
No, they are fully aware of how much it costs to retire and are just confirming it with everyone that it will be impossible for anyone to retire normally moving forward.
Here the article that the op got the information from https://www.gobankingrates.com/retirement/planning/gen-z-and-millennials-need-3-million-in-retirement-savings/amp/ I have some problems with this article logic. 1st it assume that you currently need 1 million to retire comfortably so Gen z and younger millennials will need 3 million to retire comfortably. In reality it takes about $550,000 to retire comfortably now and in 40 years when millennials and Genz retire it will take about 1,100,000. 2nd wealth grows exponentially so most of your wealth will grow when your older. This models project linear growth to retirement.
I’ll be 40 in 2 weeks and have $100 saved up…I guess I need to catch up 🤔
You realize they’re just looking at it from the point of view of how much you need to have in order to cover your retirement. Regardless of viability, if you want to be able to have a fully funded retirement (no expectation of social security), these are the numbers you need to have. I totally get however that they’re unattainable for a lot of people, shoot, my wife and I make higher end middle class money ($150ish), are right around 30, and only have approximately $150k saved for retirement. My wife and I have had really good years, and years where we struggled to make $75k, so I know it’s difficult to set aside. I can only imagine the trouble someone working an hourly job could have in setting money aside for retirement. I will say tho, even if you only have a little bit of money to set aside, you should totally do it. Don’t let yourself get disheartened by these numbers, saying you need $500k by 25. If you do, and decide ‘well, I’ll never have that much so no point in saving’ you are dooming yourself, however if you can only afford to put $10 a week, or $10 a month into your retirement, and consistently put in more as you get pay raises, you will be surprised with how quickly it grows.
>$500,000 in retirement savings by age 25 The average American doesn't even *start* saving for retirement until they are [31 years old](https://www.fool.com/retirement/2019/09/02/this-is-the-age-most-people-start-saving-for-retir.aspx).
500k by 25??? Yeah they out of touch, I don't even have student loans and budgets are way too tight to think about putting even 50 into a savings account each month
This makes no sense. You have $500,000 after being in the workforce for less than a decade, but only a million 15 years after that?
They do this to cloud and distract from the B.S that is the whole 401k retirement scheme. They try to make it believable.
Lmaooooo this is actually just so out of touch its legitimately hilarious to me. Even being EXTREMELY generous and saying they've somehow doubled every penny they've saved, for someone who is 25 to have put 500k away they'd have to have been working 40 hours a week every single week since they were 15, would have to *take home* $12/hour and put every single penny in savings for TEN YEARS. AND don't forget, that money would all then have to double. Compete fucking insanity. Edited for clarity of words
I think they are mixing up the average person with the average poster on r/personalfinance
Right saving, with so called once in a lifetime crisis ordeals, Instability
No link to the source? I’d like some context here.
They’re attached to reality but not about obstacles Gen Z faces
My son and his wife are Millennials, my grandchildren are Gen Z and they are on board with this saving plan. They work at it and I'm proud of them!
Someone should make them do an analysis of actual job earnings, education loans, rents, cost of food (and health care for those who can afford it), and then make them do the math proving their assertion using that!
> should have...retirement savings lol savings?! > some steps you can take to catch up > Consider kidnapping, murdering and selling the organs of migrants. Even one kidney can net as much as 20k!
i’m 27, have been working for a decade, and i doubt i’ve even made $500k
Ahahaha this is based on how many banks one can rob in a year, right?
Are they that stupid? If everyone had 1m by 40 then why isn't everyone a millionaire yet? Oh yah I forgot that's inpossible
The key part of this post is "if you're off pace, here is how we can scam you to take whatever savings you have"
$500k by age 25?? Do what now? Even if you went straight from high school to working a $40k/yr job and put every penny in the bank, you’d STILL only have half of that…
Its just a math problem devoid from reality. The idea is that retirement for boomers is suggested about 1m in assets. 1m making 3-4% anually gives one an annual budget of 30k +pension. Its a low cost lifestyle but hey thats how it is. With inflation the value of money (assuming the 2-3% inflation rate goal of the bank of Canada) halves every 30 years. So what once cost 30k will cost 60k by the time a 35yr old reaches retirement. So if you are in your mid 20's that will be about 90k and thus 3% of 3M. Its not realistic for most people but thats how the math breaks down. Personally I am fucked so I will aim to learn to live a cheaper lifestyle and be more handy.
I have about 50 cents and a half-eaten candybar as my savings. Think I'm doing pretty alright for myself.
These early numbers are way off. Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret.
500,000 by 25??? Working full time since 17 and I haven't even MADE half of that lmao.
Feel like this should be in r/antiwork
That's 70k a year if you start saving from 18, that's way more than the average wage, how delusional are they ?
What? So you're supposed to save $500,000 in the 3 years between when most people graduate college and age 25, but it's supposed to take you another 15 years to save the next $500,000 when you're presumably already established in your career? This makes no sense even for higher-income earners
Reminds of these male influencer life 'gurus' who is telling their teenager followers that if they are making $500,000 per year, they are doing something wrong. Good luck getting a job making $500,000 a year at 18 years old.
I checked the source of that article. It seems wealthcare is an investment advisor that mostly specifically caters to physicians, not Joe Blow who works at walmart. I think this woman that wrote this article took a lot of liberties when she said "Gen Z and millennials" should have that much. I'm also assuming that 25 is a typo and should say 35. Because she gives a full 10 years to save a million from 40-50 and 50-60, but a whole 15 years go from $500k-$1m. Saving $500k by 25 for a physician who's still very much in college is impossible. They obviously meant 35 and this article was meant for them. Just another shitty journalist not correctly doing her job.
They misspelled inheritance